21. I. Acts of management pertain to the stockholders/members II. Acts of ownership pertain to the directors/trustees *

1 point

A.Only I is true.

B.Only II is true.

C. Both are true.

D.Both are false.

22. The following are the qualifications of directors, except: *

1 point

A. Must own or have subscribed to at least one share of stock

B. Must be a resident of the Republic of the Philippines

C.Must be of legal age

D.Must be capacitated to enter into valid transactions and contracts

23. I. The acts of corporate officers within the scope of their authority are binding on the corporation. *

1 point

A. Only I is true.

B.Only II is true.

C.Both are true.

D.Both are false.

24. The directors or trustees are duty bound to elect the following except: *

1 point

A. A president, who must be a director

B.A treasurer who must be resident

C.A secretary who must be a resident and a citizen

D. All of the above

25. Which of the following provisions of the bylaws of Santiago Incorporated is not allowed: *

1 point

A. Directors must own or subscribe to at least 100 shares of stock

B. There shall be an office of a vice-president who can at the same time serve as the secretary of the corporation.

C. Owners of delinquent shares are not allowed to vote in all matters including matters relative to constituent functions.

D. None of the above

26. Macon is a stockholder of Santiago Corporation, she was supposed to receive from the corporation cash dividends but for an unexplained reason, she was told that her supposed dividends will instead be paid to her in stock dividends. If Macon will raise a legal claim relative to how she was treated, what of the following remedies could she do: *

1 point

A. File a derivative suit on behalf of the corporation against the directors for its failure to deliver her cash dividends

B. File a case for specific performance to enjoin the corporation to deliver her cash dividend

C.Exercise her right of appraisal as a form of objection to the unlawful act of the directors

D.None of the above

27. It asserts that a dissenting stockholder may opt to withdraw his subscription from the corporation by demanding payment of the fair market value of his shares. *

1 point

A.pre-emptive right

B.appraisal right

C. shareholder right

D. right to receive dividends

28. The distribution of capital happens in only three instances except: *

1 point

A. Amendment of the articles of incorporation to reduced capital stocks

B.Purchase of redeemable shares in the absence of unrestricted retained earning

C. Dissolution and liquidation of the corporation

D. Amendment of the bylaws to reduce the capital stock of the corporation.

29.It is a preferential right of stockholders to subscribe to all issues or dispositions of shares of any class in proportion to their respective shareholdings. *

1 point

A. appraisal right

B.right to vote

C.pre-emptive right

D. voting right

30. I. The corporation may only acquire its own stocks in the presence of unrestricted retained earnings. II.Preferred shares may be acquired even without surplus profit for as long as it will not result to the insolvency of the corporation *

1 point

A. Only I is true.

B.Only II is true.

C.Both are true.

D.Both are false.